"The accompanying financial statements have been prepared assuming the Company will continue as a going concern. At the balance sheet date, the Company has a stockholders’ deficiency and a deficit accumulated during the development stage. Management plans to issue more shares of common stock in order to raise funds.
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with United States generally accepted accounting principles. In the opinion of management, these financial statements include all adjustments necessary in order to make them not misleading."
NOTE 9 – LEGAL
July 25th, 2018 - Hopp Vs. Halitron – Nassau County Supreme Court – A lawsuit and countersuit was filed regarding the $700,000 Note Payable for the acquisition of Hopp Companies, Inc by Halitron Inc. with Robert Hopp. Hopp argues a default with a short pay of the Note Payable by Halitron, Halitron is arguing the value of the corporation was not accurate due to undisclosed expenses and liabilities that were incurred as of the close date but only surfaced months after the close.
August 21st, 2018 - Halitron Vs Capozzi – Relating to the above issue and transaction, Halitron, Inc. filed a lawsuit against a former employee for trespass and tortious interference with business relating to the employees and assets of Hopp Companies, Inc.
November 9th, 2018 - Halitron Vs. Life’s Time Capsule Services, Inc. – Clark County, Nevada Eight Judicial District Court – Halitron Inc. is suing to have the courts validate the $3M Note Payable between the two companies and the collection thereof.
During November of 2018, the Company was contacted by representatives of the United States Securities and Exchange Commission (the “SEC”) regarding an investigation of a number of allegations, including allegations involving the Company’s prior 3(a)(10) settlement agreements and prior transactions with Life’s Time Capsule Services, Inc. The Company retained counsel to communicate with the SEC, and the SEC indicated that the SEC would be sending the Company a subpoena, but no subpoena has been received as of the date hereof.
